Termination of Employment in Greece

Updated: Nov 29, 2021


Kinds of Employment

First of all, it is a prerequisite to refer to the kinds of employment in Greece. To be more specific, the most frequent kind of employment is the full-time employment contract of vague duration.

Part-time work is quite reduced compared to other European countries, but over the latest years, there has been a significant higher trend.

Fixed-term employment contracts are usually when it is accurately agreed that the employment is to going to be for a defined duration (e.g. 3 months, 6 months, etc.), or until a particular event happens, or when the duration of the work is apparent because of the nature and the type of the job for which employees are being hired (agreements for seasonal employment or the performance of special tasks).



End of Employment

1. Termination of a fixed-term contract: an employer can expire fixed-term employment before it terminates only for ‘compelling reasons’, such as professional incompetence, employee absenteeism, the insufficient performance of tasks in the workplace, restriction or bankruptcy of the activities of the business, etc. In any case, the end of an employment demands earlier notice, except if the employment period has already expired. Even on that occasion, nevertheless, the employer should notify the employee that the contract is not going to be continued. If the notification of the end of the employment is for ‘compelling reasons’, the employer is not obligated to proceed to the payment of compensation. Nevertheless, the concept of ‘compelling reasons’ is legitimate, and consequently, it has to be investigated by the courts. In case of the ‘compelling reasons’ are not confirmed, the announcement of the termination of the employment is fallacious and all compensation should be paid.


2.Termination of an employment contract of vague duration: The termination of the employment relationship is deemed acceptable, only if based on valid arguments, according to Article 24 of the updated version of the European Social Charter.

  • Regular notice of termination: Warning of termination of the employment and earlier written announcement of the person being dismissed are the characteristics of this kind of termination. The written notice ought to be signed by the director or by a person lawfully authorized by him/her and should be given to the employee at least 1 month and not prior than 4 months before the end of the contract (relying on the entire period of employment of the employee being dismissed). Oral notice is not legal and is invalid. In the case of a regular notice of the end of a contract, all work relationships end after the period of from 1 to 4 months within which the notice ought to be delivered.


  • Irregular notice of termination: The lay-off period begins the day of delivery of the notification of termination of the employment or on a date referred in the notice.

  1. Regardless, the employer should submit a digital notice that the contract has been ended through the ERGANI information system. It should be done whether the employment is of fixed or vague duration and whether it is finished regularly or irregularly.

  2. The employer has to compensate the dismissed employee equivalent to the duration of the contract and the salary or wage of the last month, except if the reasons for the dismissal are lawfully presented to be ‘compelling’.


3. Collective redundancies: Collective redundancies are dismissals conducted by businesses for reasons that are not related to individuals who have been dismissed but are linked with other financial or technical reasons.

According to legislation for collective dismissals, the following restricts for each calendar month should be exceeded:

  1. 6 employees for companies with 20 to 150 employees

  2. A percentage of 5% of manpower and up to 30 employees for an enterprise with more than 150 people.

It is critical to cite that the number of dismissals does not contain redundancies for reasons related to the individuals being dismissed (absenteeism, inadequate performance, etc.) or voluntary dismissals.







Termination of an employment contract by the employee

Employees can submit a notice of termination contract either in written form or orally. To be more specific, they have to notify their employers 3 months before the end at the latest. In that case, employers are not obligated to pay compensation when the employment is ended by an employee, and the employee is not authorized to take the unemployment allowance from the OAED (Manpower Employment Organization), because of lack of prior notification of termination of the employment from the employer, which is essential for the remuneration of unemployment perquisites.



Types of pension

Full old-age pension: This is paid when the employee has completed 4500 working days and he is at the age of 67. A reduced pension can be given when the employee is 62 and has 4500 working days of insurance. Insured employees are authorized to contributory and national pension.

Pension because of the death of an insured person: The surviving husband and his/her children are authorized to take to this pension.

Invalidity pension: In that case, the Disability Certification Centre (KEPA) has to evaluate the insured employees. They should have 50% or more percentage of the disability to take the pension. The employee ought to also have been insured with IKA-ETAM for the minimum essential time, relying on age.

Special dismissal protection: According to Greek legislation, a special legal protection against redundancy is primarily provided for the next categories of employees:

  1. Disabled employees;

  2. Employees, who have been called to military service;

  3. Pregnant women;

  4. Employees on vacation period.




References


1. “International Employment Law Guide – Greece: Legal.” Deloitte, 20 May 2021, Retrieved September 9, 2021, from www2.deloitte.com/global/en/pages/legal/articles/IELG/international-employment-law-guide-greece.html

2. “EURES - End of Employment - European Commission.” EURES - End of Employment - European Commission, Retrieved September 9, 2021, from https://ec.europa.eu/eures/main.jsp?catId=8469&acro=living&lang=en&parentId=7779&countryId=GR&living

3. “EURES - Kinds of Employment - European Commission.” EURES - Kinds of Employment - European Commission, Retrieved September 9, 2021, from https://ec.europa.eu/eures/main.jsp?catId=8238&acro=living&lang=en&parentId=7779&countryId=GR&living

4. “Termination of Employment Contract” Ministry of Labor and Social Affairs, 15 Apr. 2021, Retrieved September 9, 2021, from ypergasias.gov.gr/ergasiakes-scheseis/atomikes-rythmiseis/atomikes-symvaseis/lysi-symvasis-ergasias/

5. “Employment Law Reform in GREECE: Valid Reason and STATUTORY Severance Are Both Prerequisites for Termination of Employment: Perspectives: Reed SMITH LLP.” Employment Law Reform in Greece: Valid Reason and Statutory Severance Are Both Prerequisites for Termination of Employment | Perspectives, Retrieved September 9, 2021, from www.reedsmith.com/en/perspectives/2019/05/employment-law-reform-in-greece

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